Latest media reports suggest that Indian e-commerce firm Flipkart is planning to raise 2 to 3 billion dollars to expand its product range in the country and also to challenge both international and domestic rivals in the sector. Flipkart based in Bengaluru Karnataka was founded by Binny Bansal and Sachin Bansal in 2007 as an e-commerce firm.
American retail giant Walmart in August 2018 acquired more than 70 percent stake in the company making Flipkart a subsidiary of the American company.
Flipkart is reportedly planning to raise the amount at a valuation of 40 billion dollars. People who know the move by Flipkart told news agencies that Walmart is planning to bring in some big strategic investors to the shareholding of the e-commerce company. Even new-age large pure-play investment firms are welcomed by Walmart Inc to invest capital in Flipkart.
Even though there are rumors of plans to raise capital, neither Walmart nor Flipkart has so far appointed any investment banker or any such institutions to search for international strategic investors who are interested in the e-commerce firm.
When contacted by media agencies for comment on the latest media reports, a representative of Walmart Inc said that the company is not willing to comment on anything based on speculations. Flipkart did not respond to the request for comments regarding the news on fundraising plans.
In 2019, one year after Walmart Inc acquired a 77 percent stake in Flipkart, the American retailer said that it will try to make an Indian e-commerce company, a public company in four years. In April, Reuters reported that Flipkart has internally raised its IPO valuation target by around a third to $60 billion to $70 billion and plans a U.S. listing in 2023 instead of this year. The company had plans to conduct a US listing at a valuation of 70 billion dollars. As of 2022, Flipkart is valued at 37.6 billion US dollars.
There is no information regarding whether the latest fundraising plans are part of the initial public offering which might happen in the United States in the next financial year. There is also no information available regarding the company’s IPO plans for Indian equity markets.
